Tony Thurmond: “today, as our Armed Forces are engaged in operations over Yugoslavia, I am introducing legislation that corrects a…”

“today, as our Armed Forces are engaged in operations over Yugoslavia, I am introducing legislation that corrects a long-standing injustice to the widows of our military retirees. My bill would immediately increase for survivors over the age 62 the minimum Survivor Benefit Plan annuity from 35 percent to 40 percent of the Survivor Benefit Plan-covered uniform services retired pay. The bill would provide a further increase to 45 percent of covered retired pay as of October 1, 2004. Mr. President, I expect every member of the Senate has received mail from military spouses expressing dismay that they would not be receiving the 55 percent of their husband's retirement pay as advertised in the Survivor Benefit Plan literature provided by the military. The reason that they do not receive the 55 percent of retired pay is that current law mandates that at age 62 this amount be reduced either by the amount of the Survivors Social Security benefit or to 35 percent of the SBP. This law is especially irksome to those retirees who joined the plan when it was first offered in 1972. These service members were never informed of the age-62 reduction until they had made an irrevocable decision to participate. Many retirees and their spouses, as the constituent mail attests, believed their premium payments would guarantee 55 percent of retired pay for the life of the survivor.”